Bank of Chine Used Blockchain Tech to Issue Almost Three Billion in Bonds to SMEs

Bank of China Used Blockchain Tech to Issue Almost Three Billion in Bonds to SMEs

Bank of China, one of the 4 fundamental commercial banks in China, has issued 20 billion yuan ($2.8 billion) in blockchain-based totally bonds for small and micro-sized companies with their own blockchain platforms.

The financial institution introduced this Friday that it finished pricing and issuance of the bonds for the first period this week and the 2-year bond will come to the market with a 3.25% coupon rate, according to an assertion.

“We have used our own blockchain-primarily based bond issuance device in the process,” the financial institution stated inside the assertion. “This is likewise the primary bond issuance ledger device this is based totally on blockchain in the country.”

The bank used its personal blockchain system to launch virtual certificates that prove the ownership, form agencies of underwriters and document proof of transactions.

The bond issuance is a part of the country’s attempt to assist marketers with more efficient access to capital. As of September, the bank has lent 404 billion yuan ($57.7 billion) to 410,000 small and micro-sized enterprises, the bank said.

Financing for small and medium-sized businesses (SMEs) has been one of the fundamental blockchain use instances for banks and monetary offerings services in China.

Industrial and Commerce Bank of China (ICBC), the biggest bank with the aid of belongings in the globe, began to offer factoring services to SMEs on their blockchain platform in February 2018.

Ant Financial, the fin-tech arm of tech giant Alibaba, introduced it might launch its personal blockchain platform to offer SMEs with extra dependable financial services in 3 months.

Beyond China, Spanish banking Santander has issued $20 million bonds which change on Ethereum in September in a bid to boost up the bond issuance process.

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